Huawei Focuses On Selling Honor Devices To Survive U.S. Embargo
The rumors of recent days have found official confirmation: Huawei has decided to sell Honor’s assets to ensure their survival. The ownership of the Company will pass to Shenzhen Zhixin New Information Technology, a company formed by a consortium of over 30 agents, resellers, and distributors of the Honor brand. Huawei underlines that, after finalizing the sale, it will not hold any shares, nor will it be involved in any way in the management of Honor. Complete sale therefore and not partial as was originally supposed.
The reasons for the operation are clarified in the official statement: Huawei recalls that in recent times its activities in the consumer market have been subjected to enormous pressure due to the persistent unavailability of technical elements necessary to move forward in the mobile phone sector. The reference goes to the US ban which has complicated relations between Huawei and its suppliers of components and services (see Google). The situation threatened to inevitably affect even Honor which, thanks to the sale, will be able to continue to produce and sell smartphones without meeting the same limits.
Huawei underlines how the move is the result of the willingness of all parties involved in the distribution chain of Honor products to guarantee their existence and also thanks the consumers who in recent years have shown that they appreciate the brand:
Huawei highly values the dedication, attention, and ongoing support provided by Honor’s consumers, sales channels, suppliers, partners, and employees. We hope this new Honor company embarks on a new path of honor together with its shareholders, partners, and employees. We look forward to seeing Honor continue to create value for consumers.
The Honor brand was created in 2013 and focused on low-mid-range smartphones. In seven years of activity, it has managed to establish itself in the telephony market with a turnover made up of over 70 million smartphones shipped every year. Huawei has not provided financial details of the sale, but according to rumors provided by Reuters earlier this month, the amount would be more than $15 billion.
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